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CHAPTER 2: PROBLEM 1
Current Assets	$7,300
Net Fixed Assets	$26,200
Current Liabilities	$5,700
Long-Term Debt	$12,900
Shareholder Equity =
Net Working Capital =
CHAPTER 2: PROBLEM 2
	Income Statement
Sales	$675,300
Costs	$297,800
Depreciation Expense	$45,100
EBIT
Interest Expense	$20,700
EBT
Taxes @ 35%
Net Income =
Cash Dividends	$62,000
Addition to Retained Earnings =
Tax Rate =	35%
CHAPTER 2: PROBLEM 4
Taxable Income	$315,000
Table 2.3
Taxable Income	Taxable Income (cont)	Tax Rate
0	50,000	15%
50,001	75,000	25%
75,001	100,000	34%
100,001	335,000	39%
335,001	10,000,000	34%
10,000,001	15,000,000	35%
15,000,001	18,333,333	38%
18,333,334	+	35%
Income Taxes =
Average Tax Rate =
Marginal Tax Rate =		(Note: No formula needed. Just input the correct rate from the Tax Rate column.)
CHAPTER 2: PROBLEM 5
Sales	$29,200
Costs	$10,400
Depreciation Expense	$1,800
EBIT
Interest Expense	$1,050
EBT
Taxes @ 40%
Net Income
Tax Rate	40%
Operating Cash Flow =
CHAPTER 3: PROBLEM 2
Debt/Equity Ratio	0.65
Return on Assets	9.80%
Total Equity	$850,000
Equity Multiplier =
Return on Equity =
Net Income =
CHAPTER 3: PROBLEM 6
ROE	16%
Payout Ratio	25%
Retention Ratio		(Note: You must calculate the retention ratio first then the sustainable growth rate.)
Sustainable Growth Rate =

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